On Monday (29 June, 9:11 AM, GMT+7, Bangkok time), major indices in the Asia Pacific displayed divergent performance at the beginning of the week, as the markets assessed the military response by the United States targeting Iran over the weekend. Washington’s actions came after Iran launched strikes near the Strait of Hormuz, to which President Donald Trump publicly warned of further escalation in a post on Truth Social.
Negotiations to resolve the ongoing conflict have paused, according to MS NOW, mentioning a Pakistani official engaged in the diplomatic process. Despite this, participants from all involved parties remain present in Switzerland, poised to resume dialogue when circumstances permit. Meanwhile, an official from the Trump administration emphasized that technical discussions tied to a memorandum of understanding remain scheduled, asserting no formal cancellation of talks.
On Wall Street, last week concluded with sector rotation as investors shifted funds out of technology shares amid concerns that the latest AI investments by leading tech companies may not deliver anticipated returns.
Market focus in Asia is expected to turn towards South Korea, where both Samsung Electronics and SK Group plan to outline significant investment commitments. Korea Economic Daily suggests combined investments from these conglomerates could exceed $1.3 trillion over the coming decade.
Looking ahead, traders are preparing for the annual central bank meeting in Sintra, Portugal, which will feature remarks from Federal Reserve Chair Kevin Warsh. Additionally, a range of upcoming U.S. employment data, including the closely watched nonfarm payrolls report, will be closely monitored given the possibility that persistent economic strength and inflationary pressures could prompt the Fed to consider a rate hike in September.
Japan’s NIKKEI fell by 0.50% to 69,011.93. South Korea’s KOSPI declined by 0.88% to 8,337.49, while Australia’s ASX 200 rose by 0.10% to 8,772.70.
As for stocks in China, Shanghai’s SSEC slid by 0.20% to 4,019.23. Shenzhen’s SZI dipped by 0.13% to 15,761.69, while Hong Kong’s HSI grew by 0.89% to 22,874.71.
The U.S. stock markets edged down on Friday as the Dow Jones Industrial Average (DJIA) contracted by 0.09% to 51,876.11. NASDAQ lost 0.24% to 25,297.61, and S&P 500 dropped by 0.05% to 7,354.02. VIX slumped by 2.54% to 18.41.
As for commodities, oil prices increased on Monday after a sequence of reciprocal attacks between U.S. and Iranian forces in the Middle East, highlighting persistent instability in their temporary agreement, and contributed to fresh shipping delays in the Strait of Hormuz. Brent futures surged 50 cents, or 0.69%, to $72.49 per barrel, and the WTI futures added 78 cents, or 1.13%, to $70.01 per barrel.
Meanwhile, gold futures shrank by 0.37% to $4,081.10 per Troy ounce.
